National Save for Retirement Week: Oct. 21-27

National Save for Retirement was approved by the Senate and is being observed this year on October 21-27, 2012.

The Goals for National Save for Retirement Week:

Make everyone more aware of how critical it is to save now for their financial future

Promote the benefits of getting started saving for retirement today

Encourage everyone to take full advantage of their employer-sponsored plans by increasing their contributions.

All SEIU 521 members are encouraged to review or begin planning for their retirement. It is the responsible thing to do for yourself and your family.

Retirement is closer than you think.

Start saving today! Don’t be one of the millions who will enter retirement unprepared and uncertain.

National Save for Retirement Week is the perfect time to consider whether you will have enough set aside when you retire to live comfortably. If you haven’t started, begin now. If you are contributing, see how well you are doing toward meeting your goals.

Did you know that experts advise that you will need from 80 percent to 100 percent of your current income to be able to maintain your lifestyle during retirement?
Your defined benefit or defined contribution program will provide a foundation and you will be eligible for Social Security. But you will need your own savings to supplement these plans. Your 457 deferred compensation program is the best place to build those savings.

Here are a few things to keep in mind when saving for retirement:

If you save just $10 per week in your 457 deferred compensation plan for 40 years and earn an average rate of return of 7 percent, you will have over $100,000 in your account. That just shows the power of tax-deferred savings.

If you start later, don’t be discouraged. You can still save more than $73,000, by setting aside $60 a month in your tax-deferred savings account for 30 years and earn a return of 7 percent.

If you are saving now and increase your contributions, you can really make a difference in your final total. Over 30 years, adding $25 to your $100 biweekly contribution can increase your account from $264,327 to more than $330,409 (assuming you earn 7 percent).

Saver’s Credit. Sometimes saving seems really hard, especially if your income is limited. The government has a special Saver’s Credit just for you. If you are eligible, you can actually receive money back when you file your tax return.